Fletcher’s zero-sum presumptions shove him into unmistakable error

posted by
July 18, 2011
Cafe Hayek
by Don Boudreaux  
Posted in Commentary

"Suppose my neighbor Smith sells his vacant lot in Virginia for $100,000 to Mr. Lee from China. Mr. Lee then grows corn on that lot and earns profits from doing so. Mr. Lee’s net worth rises. Has my neighbor’s net worth declined? Possibly -- if he spends the $100,000 on consumption goods (which, as David ably argues, is not necessarily a bad thing; what, after all, is the ultimate goal of economic activity if not to be able to consume more?). But 'possibly' is not 'necessarily,' or even 'probably.'" (07/17/11)


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